The new rules of credit management | Amex
American Express have come out with this useful set of tips for small business folks, however the first few are good tips for everyone to aspire to.
In the aftermath of the great recession, the rules have changed regarding credit management. Doing a good job at credit management now requires a new approach. Small business owners can review their credit management strategy to be sure their companies are as well-positioned as possible to obtain the funding they need.
Old Practice New Rule
• Pay bills on time. • Pay bills early, where possible.
• Pay credit card minimum due. • Pay in full.
• Assume credit terms are status quo. • Understand all changes to your credit terms.
• Review your credit ratings when applying • Review your credit ratings at least annually.
for credit
• Use your credit score when applying • Manage your credit score proactively for
for credit. competitive advantage.
• Lenders assess your vendor • Lenders assess your vendor payment
payment history. history and your payment history with other lenders
• Credit reviews are relatively easy. • Credit reviews are comprehensive
If only more than 31 people could read this.
Odessa Byrne
May 27, 2010 at 10:47 pm